It looks like Sherwin Williams (SHW) will finally get a court date in Rhode Island. Expect them to lose.
Tomorrow, January 4th, will be a day of hearings at Rhode Island Superior Court before Judge Michael Silverstein on the arguments presented by the lead paint defendants in four motions. The hearings begin at 9:30 AM.
Judge Silverstein has set aside the entire day for the four motions filed in December 2007 by Sherwin-Williams, which NL Industries (NL) and Millennium Holdings also joined. Specifically, those motions are:
* Motion to strike the state’s proposed lead paint abatement plan
* Motion for Clarification of procedures
* Motion to value DuPont (DD) settlement, determine appropriate offset and disgorge misallocated settlement funds
* Motion to stay abatement proceedings pending Cyanamid trial.
Why will they lose? Fortunately, it has nothing at all to do with the law. Silverstein all but directed the verdict obtained against the defendants and has essentially acted as a prosecutor throughout the trial. That being said, the defendants are in front of him arguing motions against an abatement plan he asked for and was fast tracked in accordance to his wishes and the disgorgement of a settlement he blessed.
Essentially the defendant are going through this dog a pony show to better determine and document the breadth of his incompetence and judicial malfeasance prior to their date with the RI Supreme Court or US Federal Court.
Should the defendants get ANY relief as a results of the hearings that is huge news. Other than that, same ole’ story…..
Disclosure:Long Sherwin Williams
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4 replies on “Sherwin Williams Finally Gets a Court Date”
So, with this litigation, how will it affect Sherwin’s business?
-Jeff
jeff,
it won’t. anyone following this sees it for what it is. when they finally get to the RI supreme’s, they will win…
Do you think that the pending litigation is creating an overhang on the stock? I’m just curious because the company looks very very attractive at 12x earnings- double digit growth, all in free cash flow, healthy balance sheet, buybacks and dividend. This thing should be trading at 18x earnings. Just curious what you think about the litigation affected the stock.
sherwin has had a string of legal wins in the lead arena. housing is hurting the perception of shw more.
the odd thing is, it is not that much of a drag on the company because if their diversification